Colony House Apartments is a 101-unit development that serves elderly and disabled residents. Under the financing agreement, RIHousing required a long-term use restriction to ensure that the development remains affordable for the next 30 years.
“Our initial financing agreement with Citibank was the first of its kind in Rhode Island and served as Citibank’s entrée into this market. We are thrilled to bring outside investment to Rhode Island to finance the preservation of much-needed housing,” said Barbara Fields, Executive Director of RIHousing.
Through this financing structure, Citibank will make a direct loan to RIHousing, and RIHousing will issue a tax-exempt note to Citibank. RIHousing will then advance the loan proceeds to the borrower (Standard Property Company) under its tax-exempt bonding authority.
“This agreement is a testament to RIHousing’s success in broadening our partnerships and thinking creatively to attract private investment to our state,” added Fields.